RCM Alternatives:

Hedge Fund Managers

5 Other Hedge Fund

Managers who profited
during “The Big Short”

621 South Plymouth Court | Chicago, IL 60605 | 312.870.1500

www.rcmalternatives.com | invest@rcmam.com
RCM Alternatives: Hedge Fund Managers
5 Other Hedge Fund Managers who
profited during “The Big Short”
You’ve read Michael Lewis’ book “The Big Short,”
depicting the events that lead to the 2007-2008 credit
crisis, you’ve watched the Oscar-nominated screen
adaption directed by the same guy who directed
Anchorman (see our movie review here), and you’ve
mentally recorded the amount of money some hedge
fund managers (the real names of the managers found
here) made shorting sub-prime mortgages. Put all that
together and you might believe there were just a handful
of people in the world who profited from one of the most
volatile periods in financial market history. But what if we
told you “The Big Short” didn’t tell it all?
What if we told you, there was an entire investment
strategy not mentioned in the movie that was able to find
returns during the financial crisis – to the tune of about
$30 Billion in profits*. {Disclaimer: Past performance is
not necessarily indicative of future results}. And what’s
better, they didn’t have to do it betting against people
being able to make their mortgage payments? And
that normal investors like you and me can access that
strategy. What is this mystery investment strategy?
We are talking about the Managed Futures asset class, of
course, and the systematic trend following computerized
strategies utilized by asset managers in this space.
Their goal is to capture market moves no matter which
direction they happen in; finding both up and down
trends in stocks, bonds, commodities, and currencies.
The financial crisis had plenty of down trends, of course,
and managed futures thrived during the chaos – with
the benchmark indices returning between 14% and 18%,
with individual managers we track posting returns above
60% across 2007 and 2008 {Disclaimer: Past performance
is not necessarily indicative of future results}. The beauty
of it all is that these professional traders didn’t need to
travel to Florida to talk to home owners not paying the
mortgages, they didn’t need an insider at Deutsche
Bank, or need an ex-big bank trader to get them in the
door. They didn’t need banks to create credit default
www.rcmalternatives.com
Futures Trading
is complex and involves the risk
Past Performance is Not Necessarily Indicative of Future Results.
swaps for them or worry about counter-party risk should
they be correct. It wasn’t a few hedge fund managers
correctly guessing the direction of the markets.
No, it was much simpler than all of that for Managed
Futures. Turns out, they are designed to act this way.
Managed Futures strategies generally place small bets
on every move up or down in multiple markets, losing
often when those moves don’t pan out; but insuring they
capture the big move (the Big Short, if you will), when
outlier move does happen. This is what we in the business
call crisis period performance; and as a whole, Managed
Futures has been an asset class that has historically
thrived in chaotic and crisis environments. You can see
evidence not only during the 2007-2008 crisis period,
but also across a wide swath of other crisis periods in
the stock market. {Disclaimer: Past performance is not
necessarily indicative of future results}.
Of course – an investment that does well during crisis
periods, but stinks the rest of the time isn’t a huge help
to a portfolio. To really add value, it should be able to
hold its own during normal times as well. Turns out,
Managed Futures is pretty good at that as well. In the
past three years, Managed Futures has proved it follows
no asset class in performance. Managed Futures made
money while stocks did in 2014, they both were around
flat in 2015, and they were ahead significantly while
stocks were down sharply in early 2016. {Disclaimer:
Past performance is not necessarily indicative of future
results}
Let’s meet the managers who found returns during “The
Big Short” and more than held their own in the following
stock market recovery.
*based on the BarclayHedge CTA index returning 14.1%
on $206 Bilion in Assets as of the end of 2008, with profits
reflecting the increase in AUM in the Managed Futures
space.
of substantial
losses. 2
RCM Alternatives: Hedge Fund Managers

Manager #1: eco Capital Management / Global Opportunities

There’s more than one way to skin a cat, as the old
saying goes; and more than one way to attack financial AUM: $22mm
markets, as eco Capital Management embodies. Track Record Length: 9 years
Portfolio manager Kevin Doyle worked for some of the Comp ROR: 8.91%
best in the business - Toby Crabel and Monroe Trout - Ann Vol: 17.00%
and put those decades of experience to work in the eco Max DD: -28.68%
approach to the markets. While traditional systematic 2016 YTD*: +12.35%
hedge funds look to correctly pick a market’s direction *as of February 2016
and hold a trade for weeks or even months - accepting
FINANCIAL
the market’s inevitable swings back and forth during that CRISIS
2009 - MAX
period of time; eco’s short term model instead looks to (2007 - 2008) Present DD
capture the bulk of the same types of moves, but over ECO 62.48% 35.58% -28.55%
an abbreviated time frame of just days. The best way
to think of it is like the distance covered by a winding Past Performance is Not Necessarily Indicative of Future Results.
river versus the distance “as the crow flies.” Traditional
money managers are interested only in the distance
Minimum Investment
between the start and end points (as the crow flies), while
Private Fund: $50K
eco strives to capture value in those twists and bends.
For more information and the program’s full fact sheet,
Managed Account: $2mm
please call 312-870-1500.

Manager #2: Red Rock Capital, LLC / Systematic Global Macro

From Marine to author to quant hedge fund manager,
Red Rock’s Tom Rollinger has a unique background that AUM : $26 mm
shows through in the Global Macro program. Add to Track Record Length: 13 Years
that experience working with trading legend Edward O. Comp RoR: 9.83%
Thorp, and there’s a lot to like with Red Rock. Now, their Annzd Vol: 12.59%
Global Macro program is proving to be quite successful, Max DD: -13.32%
with its systematic discipline and above-average 2016 YTD*: +5.12%
exposure to commodity markets. Geared towards *as of February 2016
capturing high-value payoff trades in globally trending
FINANCIAL
markets, the program uses three distinct aspects: Market CRISIS
2009 - MAX
Profiling, Alpha Generation, and Phase Discrimination, (2007 - 2008) Present DD
with the goal of producing as high as possible risk- Red Rock 62.58% 45.33% -13.32%
adjusted returns that are uncorrelated to other major
asset classes. For more information and the program’s Past Performance is Not Necessarily Indicative of Future Results.
full fact sheet, please call 312-870-1500.
Minimum Investment
Managed Account: $500K

www.rcmalternatives.com
Futures Trading
is complex and involves the risk
of substantial
losses. 3
Past Performance is Not Necessarily Indicative of Future Results.
RCM Alternatives: Hedge Fund Managers

Manager #3: IMFC / Global Investment

There’s plenty of Managed Futures managers out there
that highlight their research infrastructure, but not too AUM: $41mm
many are approaching ongoing research into financial Track Record Length: 9 years
market modeling quite like IMFC. With ties to the Center Comp ROR: 9.06%
for Advanced Studies in Finance, Faculty of Mathematics Ann Vol: 15.59%
and the University of Waterloo, the IMFC team is able Max DD: -20.27%
to lever the resources of the University into its research 2016 YTD*: +4.28%
efforts. With this power, the IMFC team has been able *as of February 2016
to build something far greater than a simplistic trend
FINANCIAL
following strategy. By adding elements of relative value CRISIS
2009 - MAX
and options hedging on top on a traditional trend (2007 - 2008) Present DD
following program, the IMFC fund has been able to IMFC 73.57% 26.64% -20.27%
provide more alpha and global exposure all in one
place. You’ll also be hard pressed to find a systematic Past Performance is Not Necessarily Indicative of Future Results.
fund manager more up on the global market forces than
CIO Roland Austrup. Their belief is to constantly evolve
Minimum Investment
with the markets - to “skate where the puck is going to
be, not where it is”, in the parlance of their compatriot
Mutual Fund: $2,500 (IMIXIX)
Wayne Gretzky. For more information and the program’s Managed Account: $2mm
full fact sheet, please call 312-870-1500.

Manager #4: Quest / Alpha Quest Original

In the world of poker, they say if you can’t spot the sucker
at the table - you’re probably it. That’s not too far off from AUM: $257mm
the competitive world of hedge funds, where it can be a Track Record Length: 17 years
zero sum game with the gains of one manager coming Comp ROR: 14.08%
at the expense of another. Quest Partners understands Ann Vol: 20.78%
this dynamic better than most in applying game theory Max DD: -20.20%
and realizing they don’t just have to beat the markets, 2016 YTD*: +24.60%
they have to beat the other players trying to beat the *as of February 2016
markets as well. That means modeling what the other
FINANCIAL
players are doing, and creating a return profile that CRISIS
2009 - MAX
captures the good when others do, but does a better job (2007 - 2008) Present DD
of avoiding the bad. Mathematically, they kind of think of Quest 84.01% 81.87% -20.20%
it as achieving the same return distribution, but with a
positive skew instead of a negative skew. The resulting Past Performance is Not Necessarily Indicative of Future Results.
systematic trading methodology employs lower capacity
trades with shorter-term systems and multi-dimensional Minimum Investment
diversification. For more information and the program’s Managed Account: $5mm
full fact sheet, please call 312-870-1500.

www.rcmalternatives.com
Futures Trading
is complex and involves the risk
of substantial
losses. 4
Past Performance is Not Necessarily Indicative of Future Results.
RCM Alternatives: Hedge Fund Managers

Manager #5: Auctos Capital Management / Global Diversified

Auctos embodies the phrase, “There’s safety in

numbers,” by not only trading 70 global markets, but AUM: $44mm
trading eight separate models that all fit into one multi- Track Record Length: 9 years
strategy approach. Owner Kevin Jamali stresses having Comp ROR: 6.73%
uncorrelated sources of Alpha besides the traditional Ann Vol: 9.73%
trend following strategy. These other sources include Max DD: -12.22%
models such as Calendar spreads, Volatility trading, 2016 YTD*: +7.18%
Probabilistic models, and pattern recognition. And for *as of February 2016
those that think research is key, Auctos dedicates 80%
FINANCIAL
of the company’s budget to research and development, CRISIS
2009 - MAX
emphasizing a cohesive research team, in order to (2007 - 2008) Present DD
maintain continuous evolution of the firm and models. Auctos 17.92% 45.92% -11.79%
Finally, this fund would win in a battle of managers
competition, with Mr Jamali having won multiple Past Performance is Not Necessarily Indicative of Future Results.
international medals in the art of Brazilian Jiu- Jitsu.
For more information and the program’s full fact sheet, Minimum Investment
please call 312-870-1500. Mutual Fund: $2,500 (ACXIX)
Managed Account: $2mm

www.rcmalternatives.com
Futures Trading
is complex and involves the risk
of substantial
losses. 5
Past Performance is Not Necessarily Indicative of Future Results.
RCM Alternatives: Hedge Fund Managers

Disclaimer

The information contained in this report is intended for informational purposes only. While the information and
statistics given are believed to be complete and accurate, we cannot guarantee their completeness or accuracy.
RCM Alternatives has not undertaken to verify the completeness or accuracy of any of the information and
statistics provided by third parties.

As past performance does not guarantee future results, these results may have no bearing on, and may not be
indicative of, any individual returns realized through participation in this or any other investment. The risk of loss
in trading commodity futures, whether on one’s own or through a managed account, can be substantial. You
should therefore carefully consider whether such trading is suitable for you in light of your financial condition.
You may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker
to establish or maintain a position in the commodity futures market. Any specific investment or investment
service contained or referred to in this report may not be suitable for all investors. You should not rely on any of
the information as a substitute for the exercise of your own skill and judgment in making such a decision on the
appropriateness of such investments. Finally, the ability to withstand losses and to adhere to a particular trading
program in spite of trading losses are material points which can adversely affect investor performance.

We recommend investors visit the Commodity Futures Trading Commission (“CFTC”) website at the following
address before trading: http://www.cftc.gov/cftc/cftcbeforetrade.htm Managed futures accounts can subject to
substantial charges for management and advisory fees. The numbers within this website include all such fees,
but it may be necessary for those accounts that are subject to these charges to make substantial trading profits
in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered
exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive
and sign off on a disclosure document in compliance with certain CFTC rules. The disclosure documents contains
a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as
well as the composite performance of accounts under the CTA’s management over at least the most recent five
years. Investor interested in investing in any of the programs on this website are urged to carefully read these
disclosure documents, including, but not limited to the performance information, before investing in any such
programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested
in investing in a program exempt from having to provide a disclosure document are considered by the regulations
to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of
any performance information on their own.

Reliance Capital Markets II LLC (“RCM”) receives a portion of the commodity brokerage commissions you pay
in connection with your futures trading and/or a portion of the interest income (if any) earned on an account’s
assets. CTAs may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

RCM Alternatives is a registered DBA of Reliance Capital Markets II LLC.

www.rcmalternatives.com
Futures Trading is complex
and involves the risk of substantial
losses. 6
Past Performance is Not Necessarily Indicative of Future Results.
 WHAT WE DO
We build great Managed Futures portfolios with clients looking to access the managed futures
space in a meaningful way. That’s been our specialty for more than a decade, with our experienced
team up to the challenge of finding unique managers to fit unique needs.

For Investors
Research & Educate
We believe education means more than just a glossy brochure showing how managed futures is non-correlated
to the stock market. We believe it means ongoing analysis of what’s happening now, not just what happened
over the past decade; and we provide daily research and commentary via our popular ‘Attain Alternatives’ blog
covering all things alternative investments, as well as periodic whitepapers digging deeper into topics, guest
posts by fund managers, and more.

Scout Talent
You can think of us as talent scouts, helping investors scour the world of alternative investment opportunities in
an effort to identify those with robust, consistent performance, sophisticated risk management processes, and
well-developed operational infrastructure. This selection is done through our proprietary filtering algorithm
before performing one-on-one meetings and “real-time due diligence” where we analyze daily trading.

Tailor Portfolios
Armed with a menu of talented managers, we then provide customized portfolio and strategy advice to
better generate target returns and protect principal while meeting the diversification, return, and risk needs of
investors ranging from high net worth individuals to pension funds. Clients invest in these portfolios by opening
a brokerage account with us, where we earn a portion of the trade-by-trade costs and fees paid to the portfolio
managers you enlist. There are never any add-on, portfolio-level fees for our services.

Make It Easier
We make the actual investment part, with the paperwork and funding and all the rest, as easy as possible. We
do this by eschewing a ‘one size fits all’ approach in favor of a consultative approach where we work with clients
to find solutions that work for them in terms of structuring the investment. These include vanilla individual
futures accounts, to the creation of ‘Funds of One’ or direct access to managers. The choice of clearing firms
considers the investor’s requirements for credit rating, balance sheet, and more; while consideration is given to
smart collateral options via T-Bills, Notes, Corp. Debt, & Stocks.

RCM Alternatives invest@rcmam.com

621 S. Plymouth Ct. Floor 1 rcmAlternatives.com
Chicago, IL 60605 managed-futures-blog.attaincapital.com 312-870-1500

You should fully understand the risks associated with trading futures, options and retail off-exchange foreign currency transactions (“Forex”) before
making any trades. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider
whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more than your initial investment.
Past performance is not necessarily indicative of future results.
2014 2015 2016
RCM Alternatives is a registered dba of Reliance Capital Markets II LLC.
621 South Plymouth Court
Chicago, IL 60605
312.870.1500

www.rcmalternatives.com
invest@rcmam.com